Analysis of Global Sourcing and Procurement Strategies in Business

This report provides a comparative case analysis of global sourcing and procurement strategies, focusing on Selex Company and Clementine's Company. It addresses challenges such as accessing quality raw materials, managing logistics costs, and achieving a competitive advantage. The analysis draws from three articles, emphasizing the importance of global sourcing for cost reduction, product quality, and reliability. For Selex, global sourcing can minimize costs, increase value, and improve product quality. Clementine's Company can benefit from proactive supply chain management, addressing issues like unforeseen risks and rigid negotiability. The report highlights the need for effective communication, supplier selection criteria, and stakeholder management to mitigate risks related to prices, logistics, and transportation delays. Ultimately, the study underscores the significance of global sourcing in achieving organizational efficiency and competitive advantage.

Running head: PROCUREMENT AND GLOBAL SOURCING 1
Procurement and Global Sourcing
Student’s Name
Institutional Affiliation

PROCUREMENT AND GLOBAL SOURCING 2
Part A
One of the cases reviewed in the previous section is about the Selex Company. There are
significant problems which have been identified in regard to this case as discussed in this section.
For instance, Selex experiences challenges in accessing quality raw materials as well as products.
Also, the significant problem that will be addressed in this paper regards the costs of logistics
hence it is the reason why the company may fail to access products and raw materials in the
patent countries and may be required to acquire from other nations (Carluccio & Fally, 2012). In
simple words, Selex is experiencing a significant issue about Global sourcing which will be
addressed through various researches conducted in this paper. Global sourcing is a practice
where sourcing occurs from the goods and services global market based on the geopolitical
locations. Therefore, to some extent, global sourcing focuses on exploiting the global efficiencies
which were employed to deliver products and services (Jain, Girotra & Netessine, 2013).
Therefore, by evaluating article 1, it offers a clear discussion about the importance of global
sourcing. In regard to article 1, Selex can apply global sourcing to minimize the costs while
increasing value in the purchasing decisions as well as product quality, innovation, and delivery
reliability. Also, the firm can adopt a program by reviewing the previous experiences bin
recognizing the areas of improvement as well as exercise implementation.
In reviewing article 2, Selex Company can seek to adopt global sourcing to attain a
competitive advantage along with better quality, low prices, short product cycles, and accessing
new markets since the demands must be fulfilled fast following a cost reduction. This article
analyzes various challenges such as reliability, quality, culture, cost, flexibility, and delivery
which can be solved through global sourcing at Selex Company. Finally, article 3 recognized the

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advantage of global sourcing such as price reduction which is required at Selex to help address
the challenges that prevail. Through global sourcing, the top management at Selex Company can
be identified as there need to be committed and effective communication within the organization
(Allon & Van Mieghem. 2010). Generally, global sourcing is an organizational process that
focuses on segmentation of third-party external spending and observes the scarcity of
procurement resources which matter in Selex Company.
Part B
Clearly, Clementine’s Company faces procurement related issues as seen in the previous
section. For instance, Clementine’s Company experiences issues related to logistics costs. High
costs of logistics impact procurement by minimizing the advantages which may be attained from
low procurement costs. It is evident that low costs of logistics are associated with decisions
which are cost-effective in every institution. Finally, Clementine’s Company needs to acquire a
beneficial competitive advantage which outlines the dimensions which incorporate prices of
products as well as the quality of the products and services (Antràs & Helpman, 2004) .
Therefore, in analyzing article 1, the findings show that the purchasing decisions of every
organization assist in minimizing costs as well as increases the value which influences product
innovation, quality, and reliability. Therefore, article 1 suggests that it is important if an
organization selects and evaluates a supplier through a broad-based criterion that facilitates
quality product and service delivery.
Also, Clementine’s Company can be minimizing g issues involving procurement if it
employs a highly experienced purchasing manager. The findings in article 2 outlines that a
supply chain management is seen as a complicated system existing in the textile industry hence

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should focus on minimizing the lead times while improving the efficiency and identifying the
importance of adopting a proactive technique. The article suggests that a proactive approach is a
solution to procurement issues which prevail at Clementine’s Company. The company faces a
challenge of the unforeseen risks, language problems, as well as rigid negotiability which
connects to procurement hence needs to overcome through the delivery of effective customer
services (Ara, 2013). Also, Clementine’s Company should focus on recognizing challenges of
flexibility, reliability, costs, and delivery which may impact procurement strategies as outlined in
this article. Finally, article 3 suggests that a company can adopt selection criteria that can help to
solve supplier-related challenges that prevail at Clementine’s Company. Also, the article
explores the global sourcing which helps companies source top management and products
(Gualandris, Golini & Kalchschmidt, 2014). The article also portrays the importance of supplier
criteria which Clementine’s should also adapt to address the supplier-related issues.
Clementine’s should manage its stakeholders as well as ensure they have accurate data which can
guide in mitigating risks which are related to prices as discussed in the article. The issue of
global sourcing is also connected to logistic, inventory management, and transportation delays
which should be addressed at Clementine’s Company.

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References
Allon, & Van Mieghem. (2010). The Mexico-China Sourcing Game: Teaching Global Dual
Sourcing. INFORMS Transactions On Education, 10(3), 105-112. doi:
10.1287/ited.1090.0045
Antràs, P., & Helpman, E. (2004). Global sourcing. London: Centre for Economic Policy
Research.
Ara, T. (2013). Global Sourcing in Industry Equilibrium. Japanese Economic Review, 65(1), 93-
115. doi: 10.1111/jere.12010
Carluccio, J., & Fally, T. (2012). Global sourcing under imperfect capital markets. Review of
Economics and Statistics, 94(3), 740-763.
Gualandris, J., Golini, R., & Kalchschmidt, M. (2014). Do supply management and global
sourcing matter for firm sustainability performance? An international study. Supply
Chain Management: An International Journal, 19(3), 258-274.
Jain, N., Girotra, K., & Netessine, S. (2013). Managing global sourcing: Inventory
performance. Management Science, 60(5), 1202-1222.